* To focus on life sciences & diagnostics businesses
* Spin-off expected to be complete by end 2014
* Shares rise as much as 8 pct
(Adds conference call details, background; updates stock
Sept 19 Agilent Technologies Inc will spin
off its slowing electronic measurement business into a public
company by the end of next year to focus on its fast-growing
Shares of Agilent, carved out of Hewlett-Packard Co
in 1999, rose as much as 8 percent on the New York Stock
Exchange in early trading.
The yet unnamed electronic measurement company will provide
electronic test and measurement equipment, including
oscilloscopes, power meters and sensors used in the
communications, aerospace and defense, and industrial markets.
The business, which brings in about 40 percent of Agilent's
revenue, has seen sales decline over the past several quarters
due to lower U.S. defense spending and a weak communications
market, particularly in wireless handset manufacturing.
The deal will allow Agilent to focus on its life sciences,
diagnostics and chemical analysis business, where it has been
steadily expanding to offset the impact of the cyclical nature
of its electronic measurement operations.
Investors have different criteria, timeline and valuation
metrics for the two businesses, said Agilent Chief Executive
These differences have limited the growth in Agilent's share
price and valuation, Sullivan said on a conference call.
Agilent bought Danish cancer diagnostics firm Dako for $2.2
billion last year and scientific-equipment maker Varian Inc for
$1.5 billion in 2010.
Sullivan will continue to lead the Agilent, which expects
revenue of about $3.9 billion in fiscal 2013.
Agilent Chief Operating Officer Ron Nersesian is the
CEO-designate of the company to be spun off, which is estimated
to record revenue of about $2.9 billion.
Shareholders of Agilent, which had a market capitalization
of $16.3 billion as of Wednesday, will receive a pro rata
distribution in the measurement company.
Santa Clara, California-based Agilent shares, which have
gained about 20 percent this year, jumped to $53.20 on Thursday.
The stock was up 5 percent at $51.86 in late morning
(Reporting by Esha Dey in Bangalore; Editing by Joyjeet Das)